India's Path to Becoming a Global Investment Hub: Strategic Reforms Needed

A think tank, GTRI, calls for strategic reforms to elevate India's global investment appeal. Despite significant potential, India's FDI remains underwhelming compared to other nations. GTRI proposes a four-step plan focusing on cost reduction, business ease, and a framework for investment proposals evaluation to boost foreign investments.

Strategic reforms are essential to make India more attractive to global investors, according to GTRI. Despite its potential, current FDI data indicates that India hasn't fully leveraged its opportunities.

The think tank's four-step plan suggests reducing costs for companies relocating to India, improving the Ease of Doing Business, and creating a framework for evaluating investment proposals.

India drew USD 44.4 billion in FDI for FY2024, a mere 1.1% of its GDP, significantly trailing behind countries such as China and Brazil. To compete, India must address higher labor, raw material, energy, and financial costs. Additionally, attracting top global firms and enhancing logistics could strengthen its manufacturing and export capabilities.

(With inputs from agencies.)